Question 1

A tractor is an example of which of the following factors of production?

Accepted Answer

A)  capital
B)  labour
C)  land
D)  entrepreneurship
E)  energyF) C) and D)
G) B) and C)

Question 2

The two big economic questions

Accepted Answer

A)  summarize the scope of economics.
B)  are "what goods and services are produced?" and "how are goods and services produced?"
C)  have nothing to do with goods and services.
D)  do not consider for whom goods and services are produced.
E)  have nothing to do with the way goods and services are produced.F) All of the above
G) D) and E)

Question 3

Use the figure below to answer the following questions.
  
Figure 1A.3.10
-Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point A is

Accepted Answer

A)  2
B)  -2
C)  0.25
D)  -0.25
E)  -4F) A) and B)
G) A) and C)

Question 4

Use the figure below to answer the following questions.
  
Figure 1A.3.10
-Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point B is

Accepted Answer

A)  2
B)  -2
C)  0.25
D)  -0.25
E)  0.5F) B) and E)
G) A) and E)

Question 5

"The rich face higher income tax rates than the poor" is an example of a

Accepted Answer

A)  a normative statement.
B)  a positive statement.
C)  a predictive statement.
D)  a theoretical statement.
E)  an analytical statement.F) All of the above
G) A) and C)

Question 6

Which factor of production earns the most income?

Accepted Answer

A)  capital
B)  land
C)  labour
D)  entrepreneurship
E)  the stock marketF) All of the above
G) A) and D)

Question 7

Use the figure below to answer the following questions.
  
Figure 1A.2.4
-Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

Accepted Answer

A)  A
B)  A and B
C)  B, C, and D
D)  A and D
E)  B and CF) A) and B)
G) A) and C)

Question 8

Use the figure below to answer the following questions.
  
Figure 1A.3.4
-In Figure 1A.3.4,the slope across arc BC is

Accepted Answer

A)  -2/3.
B)  -3/2.
C)  -2.
D)  -4/3.
E)  -3/4.F) None of the above
G) C) and E)

Question 9

Use the figure below to answer the following question.
  
Figure 1A.3.8
-The slope of the line in Figure 1A.3.8 is

Accepted Answer

A)  3/2.
B)  2/3.
C)  -3/2.
D)  -2/3.
E)  none of the above.F) A) and B)
G) A) and C)

Question 10

Use the figure below to answer the following questions.
  
Figure 1A.4.5
-The Latin term ceteris paribus means

Accepted Answer

A)  "Innocent until proven guilty."
B)  "Fallacies are composed."
C)  "Compositions are fallacious."
D)  "The whole is not the sum of the parts."
E)  "If all other relevant things remain the same."F) A) and E)
G) All of the above

Question 11

An incentive ________.

Accepted Answer

A)  could be a reward but could not be a penalty
B)  could be a penalty but could not be a reward
C)  could be either a reward or a penalty
D)  is the opposite of a tradeoff
E)  occurs in the macroeconomy but not in the microeconomyF) D) and E)
G) A) and D)

Question 12

Complete the following sentence.Financial capital is

Accepted Answer

A)  one of the "gifts of nature."
B)  the tools and machines that are used to produce goods and services.
C)  money, stocks, and bonds.
D)  used in the production of goods and services.
E)  land.F) A) and D)
G) B) and E)

Question 13

The creation of a successful movie illustrates choices made in self-interest that also achieve the social interest if ________.

Accepted Answer

A)  the movie has a higher attendance than any other movie produced that year
B)  the movie is produced at the lowest possible cost, and the movie gives the greatest possible benefit
C)  the movie addresses a social issue
D)  the movie is an Academy award winner because an Academy award winning movie is most popular with the movie-going public
E)  the movie is produced in a country where workers typically earn less than workers in North AmericaF) B) and C)
G) D) and E)

Question 14

Use the figure below to answer the following questions.
  
Figure 1A.1.5
-Two variables are negatively related if

Accepted Answer

A)  increases in one are associated with decreases in the other.
B)  increases in one are associated with increases in the other.
C)  both variables are less than zero.
D)  any change in one causes an increase in the other.
E)  any change in one causes a decrease in the other.F) A) and B)
G) D) and E)

Question 15

Use the figure below to answer the following questions.
  
Figure 1A.2.4
-Which curve or curves in Figure 1A.2.4 shows a positive relationship between unemployment and inflation?

Accepted Answer

A)  A
B)  A and B
C)  B, C, and D
D)  A and C
E)  none of the curves.F) A) and E)
G) A) and D)

Question 16

Which one of the graphs in Figure A1.13 represents the relationship between x and y?
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (a) and (b) 
Answer: D
Diff: 1 Type: MC
Topic: Appendix: Graphs Used in Economic Models
1.7 Appendix: The Slope of a Relationship
-The slope of a horizontal line is

Accepted Answer

A)  positive.
B)  negative.
C)  zero.
D)  infinite.
E)  initially positive and then negative.F) A) and D)
G) A) and E)

Question 17

Sue,who has a law degree,earns $200,000 a year,while Chris,a high-school dropout,earns $5.00 an hour.This is an example of an economy facing the ________ question.

Accepted Answer

A)  "what"
B)  "how"
C)  "for whom"
D)  "where"
E)  "when"F) D) and E)
G) A) and B)

Question 18

Use the figure below to answer the following questions.
  
Figure 1A.1.5
-The relationship between two variables that are positively related is shown graphically by a line that

Accepted Answer

A)  slopes upward to the right.
B)  is horizontal.
C)  slopes downward to the right.
D)  is vertical.
E)  is above the x-axis and to the right of the y-axis.F) A) and E)
G) A) and D)

Question 19

Use the figure below to answer the following questions.
  
Figure 1A.3.3
-Figure 1A.3.3 illustrates two variables,x and y,which are

Accepted Answer

A)  negatively related, with a decreasing slope as x increases.
B)  negatively related, with an increasing slope as x increases.
C)  positively related, with a decreasing slope as x increases.
D)  positively related, with an increasing slope as x increases.
E)  positively related, with slope first increasing then decreasing.F) C) and E)
G) A) and D)

Question 20

"The rich face higher income tax rates than the poor,which is not good since it is the rich who provide jobs for the poor." This is an example of

Accepted Answer

A)  a normative statement.
B)  a positive statement.
C)  a negative statement.
D)  a theoretical statement.
E)  a descriptive statement.F) B) and D)
G) All of the above

Exam : 1 What Is Economics

Complete the following sentence.Financial capital is

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Sue,who has a law degree,earns $200,000 a year,while Chris,a high-school dropout,earns $5.00 an hour.This is an example of an economy facing the ________ question.

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The two big economic questions

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Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4,the slope across arc BC is

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Use the figure below to answer the following question. Figure 1A.3.8 -The slope of the line in Figure 1A.3.8 is

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The creation of a successful movie illustrates choices made in self-interest that also achieve the social interest if ________.

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Use the figure below to answer the following questions. Figure 1A.3.10 -Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point A is

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Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows a positive relationship between unemployment and inflation?

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A tractor is an example of which of the following factors of production?

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Use the figure below to answer the following questions. Figure 1A.4.5 -The Latin term ceteris paribus means

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Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

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"The rich face higher income tax rates than the poor,which is not good since it is the rich who provide jobs for the poor." This is an example of

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Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables,x and y,which are

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Use the figure below to answer the following questions. Figure 1A.1.5 -Two variables are negatively related if

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Use the figure below to answer the following questions. Figure 1A.1.5 -The relationship between two variables that are positively related is shown graphically by a line that

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Use the figure below to answer the following questions. Figure 1A.3.10 -Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point B is

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An incentive ________.

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"The rich face higher income tax rates than the poor" is an example of a

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Which factor of production earns the most income?

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Which one of the graphs in Figure A1.13 represents the relationship between x and y? A) (a) B) (b) C) (c) D) (d) E) (a) and (b) Answer: D Diff: 1 Type: MC Topic: Appendix: Graphs Used in Economic Models 1.7 Appendix: The Slope of a Relationship -The slope of a horizontal line is

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